Audits for not-for-profit organisations are necessary but can be stressful. At Aurora Financials, we aim to reduce that stress for our clients. We’re award winning not for profit auditors and here are some of the main ways you can make your audits easier.
Become Familiar With What Will Be Audited
Larger charities have more reporting requirements. Audits help ensure that financial statements are prepared accurately. It’s important not to just focus on documentation, especially if it’s paper-based. Instead, it’s far more important to focus on standard operating procedures. Each process in the organisation should be documented in a flow chart that auditors can see. It’s not about producing more documents but making sure that the processes work well.
Prepare All Audit Documents
It is important to collect the relevant documents once you have determined the scope of the audit. It is good practice to ensure these documents are collected throughout the year. Non profit organisations can create an audit folder with all the required documents, such as bank statements, receipts, payroll and other documents. Each department should have a designated person who keeps track of all audit requirements and documents. Having documents available for the audit helps to reduce the time taken for the audit.
Prioritise Pre-Audits
Not forprofits should always conduct a pre-audit before they undergo the actual audit, either by their own employees or by someone externally. A pre-audit involves reviewing all information to ensure that it is accurate before the actual audit takes place. Even if this step seems optional and unnecessary, it is best not to skip it. The pre-audit allows you to identify and correct any errors in your financial statements before they are highlighted in the actual audit. It also ensures that the audit will proceed smoothly and without wasting any time.
Mock Audits Can Be Helpful
As another step to be taken internally before an audit occurs, a mock audit can help employees understand the process and documents required during an audit, especially if they are new. It is important to include goals, a timeframe and recommendations for improvement during mock audits.
Work With A Good Auditor
At Aurora Financials, we’re here to see your business thrive. We have award-winning accountants and auditors who use the latest technologies to help grow and protect your business. If you’re looking for a CPA accountant or auditor for your not for profit audits, contact us today.
